Fractional Ownership News

Marriott reports big losses

Marriott International, the biggest US hotel chain, reported a third-quarter loss after a $752 million pre-tax charge for its timeshare business.

The net loss in the 12 weeks to September 11 was $466 million, or $1.31 a share, compared with a profit of $94 million, or 25 cents, a year earlier, reports Bloomberg.com. Hotel owners are struggling to attract customers as the recession deters vacationers and forces companies to slash travel budgets. Marriott, owner of the Ritz-Carlton, Courtyard and Residence Inn brands, cut costs by shelving fractional and timeshare developments, shortening work hours, freezing hiring and reducing investment spending.

The company expects to cut net debt this year by between $600 million and $650 million, Chief Financial Officer Carl Berquist said. Construction abroad will surpass developments in the U.S., with Asia making up almost 40 percent of the company’s total pipeline. Fourth-quarter earnings, excluding items, may be between 20 cents and 23 cents a share, Marriott said.

Adjusted earnings so far this year total $1 a share. In July, the company forecast 2009 earnings excluding items of as much as 86 cents a share, lower than the $1.02 it estimated in April.

Starwood and Host Hotels & Resorts Inc. are due to report their results later this month.

www.marriott.com

09/10/09

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